The National Industrial Court sitting in Benin, Edo State, has ordered Mudiame University to pay its former Vice-Chancellor, Prof. Ernest B. Izevbigie, ₦5.38 million in outstanding salaries, remit ₦2.37 million in personal income tax and ₦2.02 million in pension contributions following a dispute over his employment and resignation.
The court, presided over by Justice Adunola Adewemimo, also awarded ₦7.5 million in general damages to Prof. Izevbigie after finding that the university breached his employment terms by failing to pay his emoluments as and when due. The court ordered that all monetary sums awarded be paid within 60 days, failing which they will attract 10 per cent interest per annum.
Prof. Izevbigie had told the court that he was appointed Vice-Chancellor of Mudiame University in September 2021 for a five-year tenure but resigned after about 18 months following the university’s failure to pay his salaries and bonuses.
According to the judgment, Prof. Izevbigie claimed outstanding salaries, personal income tax, pension contributions and reimbursable expenses. He also sought ₦67.68 million representing the unexpired three years of his tenure, the use of a Toyota Highlander or its ₦15 million open-market value, and ₦10 million in general damages.
In its defence, Mudiame University argued that Prof. Izevbigie failed to give the required three months’ notice before resigning and was therefore liable to pay three months’ salary in lieu of notice.
Counsel to the university also argued that his claim for reimbursable expenses was not supported by the necessary approvals and documentary evidence. The university consequently urged the court to dismiss the case and uphold its counter-claim.
In response, counsel to Prof. Izevbigie relied on his resignation letter and the university’s subsequent acceptance of it. The counsel maintained that his remuneration was payable monthly and urged the court to grant the reliefs sought.
In the judgment, Justice Adewemimo held that Mudiame University breached its employment contract by failing to pay Prof. Izevbigie’s salaries as and when due. The court found that he had established his entitlement to salary arrears after evidence showed that the university owed him outstanding payments.
The court calculated the outstanding salary arrears at ₦6,881,549.34 but deducted ₦1.5 million which the university had already paid Prof. Izevbigie after his exit. This left a balance of ₦5,381,549.34, which the university was ordered to pay.
The court also ordered the university to pay ₦2,366,976 in Prof. Izevbigie’s personal income tax for October 2021 to February 2023 to the Edo State Tax Authority.
On pension contributions, the court found that the monthly pension deduction was ₦112,000. For the 18 months Prof. Izevbigie spent in the university’s employment, the court calculated the pension contribution at ₦2,016,000 and ordered the university to remit the money to a Pension Fund Administrator to be provided by him.
The court, however, rejected Prof. Izevbigie’s claim for ₦2.56 million in reimbursable expenses, holding that he failed to provide sufficient evidence to prove the claim.
Justice Adewemimo also rejected his claim for ₦67.68 million representing the unexpired portion of his five-year tenure. The court held that the employment relationship had ended and that he could not continue to earn salary for the remaining period of the tenure.
The court equally refused his claim for the Toyota Highlander or its ₦15 million open-market value, noting that Prof. Izevbigie had resigned after about 18 months and had therefore not completed the five-year tenure required under the employment terms for the vehicle benefit.
On general damages, the court found that Prof. Izevbigie had established a case of constructive dismissal, noting that he was deprived of his salary for months and that the university’s conduct amounted to an unfair labour practice.
The court consequently awarded ₦7.5 million in general damages in his favour.
The court also rejected Mudiame University’s counter-claim for ₦4.8 million representing three months’ salary in lieu of notice. Justice Adewemimo held that the university had accepted Prof. Izevbigie’s resignation and could not subsequently challenge the notice period.
The university’s counter-claim over alleged unauthorised expenditure was also dismissed for lack of sufficient evidence.
In addition, the court awarded ₦300,000 as costs against Mudiame University.
The judgment ordered that all monetary sums awarded be paid within 60 days, with a 10 per cent annual interest applying if the university fails to comply within the stipulated period.
